Japan's Abe Appoints Ex-Rival as His No. 2

By

Alexander Martin

Updated Dec. 25, 2012 8:28 p.m. ET

TOKYO—Japan's incoming prime minister, Shinzo Abe, on Tuesday appointed Shigeru Ishiba, a former rival for leadership of the Liberal Democratic Party and a party heavyweight, to the party's No. 2 post, a key role in what will be a major challenge for the new administration—winning upper-house elections this summer.

Mr. Ishiba, who recently made headlines with aggressive comments calling for a weaker yen, will wield considerable influence over the LDP as it returns to power with Mr. Abe, who is set to be chosen prime minister by the lower house of parliament on Wednesday.

ENLARGE

Shinzo Abe, third from left, and his top lieutenants Tuesday, including Shigeru Ishiba, fourth from left.
Associated Press

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Mr. Ishiba's reappointment as LDP secretary-general is also seen as a move to capitalize on his popularity among rank-and-file party members, as well as his high profile among the public.

Following a landslide victory in the Dec. 16 lower house elections, the LDP now aims to win back a majority in this summer's upper-house election to give the government a free hand to pass most bills and banish the legislative gridlock that has hamstrung Japan for years.

"We were victorious in the general election, but only by winning next year's upper-house election will we be able to resolve the twisted Diet and move forward with our mid-to-long-term plans," Mr. Abe said during a news conference following his appointments to the party's top positions. He was referring to the situation by which no party controls both houses of parliament.

Of the party's top four posts, Mr. Abe filled two with women, something he said indicated that the party was changing.

Seiko Noda, who served as postal minister under the administration of former prime minister, Keizo Obuchi, in the late 1990s, was appointed chairwoman of the party's general council, while sixth-term lawmaker Sanae Takaichi was chosen as policy chief.

Mr. Ishiba, a former defense minister who narrowly lost to Mr. Abe in the LDP's presidential election in September, said on Friday he believed a suitable trading range for the dollar was between ¥85 and ¥90.

Mr. Abe had said throughout the parliamentary campaign that the yen needs to be weaker to revitalize Japan's economy. But it was the first time a senior LDP official had indicated a specific range.

Mr. Ishiba said excessive yen weakness would have downsides, such as higher prices of fuel imports. On Sunday, Mr. Abe also said a dollar at around ¥90 would support the profits of Japanese exporters.

The calls weakened the yen to a 20-month low of ¥84.95 against the dollar in Tuesday trading.

Mr. Ishiba headed the Defense Ministry for three terms—including a period before it was upgraded from an agency to full ministry status in 2007—and is known for his expertise in security issues.

Like Mr. Abe, he has been a strong advocate of revising Japan's constitution and lifting a self-imposed ban on exercising the right of collective self-defense, which requires allies to assist each other when they come under attack.

National security was a major focus for the LDP in the election campaign, as ties between Japan and China soured amid a territorial dispute over islands in the East China Sea claimed by both countries.

In response, the LDP promised to strengthen Japan's control of the islands while increasing military spending.

The LDP won an overwhelming victory in the election, securing 294 of 480 lower house seats. Adding those won by its ally, New Komeito, the total surpasses the two-thirds majority required to override upper house vetoes. However, governing parties tend to be careful about using such a supermajority out of concerns of being seen as too forceful, making the coming upper-house election all the more important.

Meanwhile, the Democratic Party of Japan, which suffered a crushing defeat in the general election, also held its leadership election Tuesday. Former Trade Minister Banri Kaieda was elected the party's new president to replace incumbent Yoshihiko Noda, and is tasked with rebuilding the party ahead of the upper house election.

Mr. Kaieda, who worked as an economic commentator before becoming a politician, was making his second run for the party's top post after losing to Mr. Noda in August last year.

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